Question

TABLE A:

ASSETS	LIABILITIES
Required Reserves $288,000	Demand Deposits $1,800,000
Excess 12,000
Loans and Securities $1,500,000
Total Assets $1,800,000	Total Liabilities $1,800,000

29. The required reserve ratio for the bank in Table A is

A) 18 percent. ​​B) 10 percent.

C) 12 percent.​ ​D) 16 percent.

30. Refer to Table A. The Fed would have to increase the reserve requirement to what percentage for this bank to have no excess reserves?

A) 20%

B) 18.2%

C) 12.4%

D) 16.67%

31. The money multiplier for the bank in TABLE A is

A) 5.

B) 10

C) 8.33

D) 6.25

Answer 1